Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Moscone Contract topic
No spam. Unsubscribe anytime.
Committee forwards recommended Moscone Center management extension after debate over bidding
Summary
After presentations and public comment from labor and business groups, the committee voted to send an 8-year management amendment for Moscone Center to the full Board without recommendation; Supervisor Campos objected to bypassing a full competitive bid.
The Government Audit and Oversight Committee on Dec. 16 voted to send to the full Board of Supervisors, without recommendation, a resolution authorizing the city administrator to enter into a fifth amendment to the Moscone Convention Center management agreement.
City administration (speaker in the transcript identified as "Mr. Lee") told the committee that an ERA study and consultations with labor convinced staff that extending the contract with current manager SMG would provide stability during a worsening economy. He described the proposed financial structure: an initial payment of $8,500,000 on signing, $8,000,000 to begin the new eight-year period, a 20% food-and-beverage percentage and a $2,000,000 guaranteed minimum each year. "The total package being $24,500,000 in the next 8 years," the administrator said.
Supervisor David Campos questioned the lack of a competitive bid and said as a matter of policy contracts of this magnitude should be opened to competition; he indicated he would not support the extension without a competitive process. Supporters at the hearing—including union representatives, the Yerba Buena Alliance, the San Francisco Convention and Visitor Bureau, and the Chamber of Commerce—testified in favor, citing labor relationships, neighborhood responsiveness and the economic stimulus conventions bring to the city.
Following public comment and questions from supervisors, the committee agreed to transmit the item to the full Board as a committee report without recommendation, with Supervisor Campos recorded as opposing the committee—s support of the extension.
The item will be placed on the Board of Supervisors agenda for further consideration; the committee action does not constitute final approval of the contract amendment.
